Commercial auto liability insurance coverage in New Jersey is an important safeguard for any company with employees who operate vehicles for business purposes. It covers your business when one of your employees is at fault for an accident that causes property damage or a personal injury. Without this type of mandatory insurance, the injured party could sue your business directly, and you will be subject to fines, penalties, license suspension and other potential legal ramifications. If you have liability insurance for your business, your insurer will cover costs for property damage, bodily injury and medical payments up to the policy's limits.

Why You Need Commercial Automobile Liability Coverage

New Jersey law requires all vehicles in operation to be covered by a minimum amount of liability coverage. Even if this type of insurance weren't required by law, it would still be an important investment for any business. Without commercial automobile liability coverage, a single severe accident could subject you to fines and penalties deplete your business's funds and force the possibility of bankruptcy. It protects your business's assets and prevents this situation from occurring.

Liability Coverage Basics

Options you must choose when purchasing a policy include:

Limits - The policy's limit is the maximum amount that will be paid by the insurance company in the event of a covered loss.

Deductible - The policy's deductible is the amount of money you must pay out of pocket before the policy will start covering costs.

The premium you will pay for a policy varies based on the options you choose. Higher policy limits and lower deductibles tend to be more expensive, while lower limits and higher deductibles are likely less expensive. A Plymouth Rock independent agent can help you find a policy that balances cost and coverage to best meet your business goals.